International consulting firm McKinsey estimates Koor’s value at about 20% above the price Claridge paid for the concern’s shares. The estimation matches the assessments of analysts such as Smith-Barney Oppenheimer and Merrill Lynch, who have valued Koor’s share in recent months at $30.
The transaction in which Claridge bought 10.2% of Koor from Shamrock, and received an option for a similar share, was carried out at a per share price of $24.5. Koor is currently trading at $21 per share. A due diligence investigation carried out by CPA Gad Somekh, produced a similar valuation to that of the McKinsey examination.
Claridge will therefore exercise its option on the deadline of October 20. At a Koor board of directors’ meeting scheduled for the beginning of November, Claridge’s nominees for directors will be presented for approval and a shareholders’ meeting will be held at the end of the month to authorize the appointments.
As reported, Charles Bronfman will be appointed chairman of the board and Jonathan Kolber will serve as deputy chair.
McKinsey focused its report on Tadiran, Nesher, Makhteshim, Agan and Telrad, which account for 90% of Koor activity. McKinsey recommended the concern focus on activities in the chemical, electronics and telecommunications sectors, as they are growth and export-oriented.
Following McKinsey’s report, Koor decided the consulting firm will continue to work with Makhteshim in order to prepare a strategic plan for continued growth in activity. According to estimates, McKinsey will continue to work with Koor on a future strategic plan.